📊 CNK Key Takeaways
Investment Thesis
Cinemark exhibits severe financial distress with negative free cash flow (-$62M), minimal interest coverage (2.1x), and extremely high leverage (9.74x debt-to-equity) that threatens sustainability. While revenue shows modest growth (+2.1% YoY) and net margins are stable at 4.4%, the company's ability to service its $1.9B debt burden is questionable given declining diluted EPS (-49.5% YoY) and inadequate operating cash generation relative to capital expenditure requirements.
CNK Strengths
- Modest revenue growth of 2.1% YoY indicating operational demand recovery
- Positive net income of $138.2M with stable 4.4% net margin despite industry challenges
- Adequate current ratio of 1.27x providing near-term liquidity cushion
CNK Risks
- Critically negative free cash flow of -$62.0M indicates company is burning cash and cannot fund operations and capex from operations
- Extreme leverage at 9.74x debt-to-equity with $1.9B long-term debt creates significant refinancing and solvency risk
- Dangerously low interest coverage ratio of 2.1x leaves minimal margin for operational deterioration or rate increases
- Diluted EPS collapsed 49.5% YoY despite modest net income growth, indicating significant equity dilution
- Zero cash reserves heightens vulnerability to unexpected shocks or debt covenant violations
Key Metrics to Watch
- Operating cash flow trend and path to positive free cash flow
- Debt-to-EBITDA ratio and covenant compliance status
- Interest coverage ratio stability as capital structure becomes critical
- Capital expenditure efficiency and ability to reduce capex intensity
CNK Financial Metrics
💡 AI Analyst Insight
Cinemark Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CNK Profitability Ratios
CNK vs Default Sector
How Cinemark Holdings, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CNK Balance Sheet & Liquidity
CNK 5-Year Financial Trend
5-Year Trend Summary: Cinemark Holdings, Inc.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $1.34 reflects profitable operations.
CNK Growth Metrics (YoY)
CNK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $857.5M | $49.5M | $0.40 |
| Q2 2025 | $734.2M | $45.8M | $0.32 |
| Q1 2025 | $540.7M | $24.8M | $0.19 |
| Q3 2024 | $874.8M | $90.2M | $0.61 |
| Q2 2024 | $734.2M | $45.8M | $0.32 |
| Q1 2024 | $579.2M | -$3.1M | $-0.03 |
| Q3 2023 | $650.4M | $24.5M | $-0.20 |
| Q2 2023 | $744.1M | $73.4M | $-0.61 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CNK Capital Allocation
CNK SEC Filings
Access official SEC EDGAR filings for Cinemark Holdings, Inc. (CIK: 0001385280)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CNK
What is the AI rating for CNK?
Cinemark Holdings, Inc. (CNK) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNK's key strengths?
Modest revenue growth of 2.1% YoY indicating operational demand recovery. Positive net income of $138.2M with stable 4.4% net margin despite industry challenges.
What are the risks of investing in CNK?
Critically negative free cash flow of -$62.0M indicates company is burning cash and cannot fund operations and capex from operations. Extreme leverage at 9.74x debt-to-equity with $1.9B long-term debt creates significant refinancing and solvency risk.
What is CNK's revenue and growth?
Cinemark Holdings, Inc. reported revenue of $3.1B.
Does CNK pay dividends?
Cinemark Holdings, Inc. does not currently pay dividends.
Where can I find CNK SEC filings?
Official SEC filings for Cinemark Holdings, Inc. (CIK: 0001385280) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CNK's EPS?
Cinemark Holdings, Inc. has a diluted EPS of $1.04.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.